Effects of Economic Recovery on Market Capitalization in Nigeria
Abstract
The work examined the impact of economic recovery on market capitalization in Nigeria. To achieve the objective of the study, ex-post facto research design was adopted. The researcher used secondary data in collating the required data. The data were collected from CBN statistical bulletin. In testing the hypotheses, multiple regression analysis was used. The findings revealed that GDP growth rate has positive impact on market capitalization while inflation rate and exchange rate have negative impact on market capitalization. The study recommends that Nigeria government should devise a means of increasing gross domestic product growth rate through effective utilization of their revenue allocation and expending. The study also recommends that during economic recovery, Nigeria government should ensure that their inflation rate is reduced. Inflation being the major economic factor that can be hampered by economic recession can reduce market capitalization in Nigeria.
Keywords
Economic recoveryGDP growth rateinflation rateexchange rate and market capitalization.
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